Overtrading - Every Trader's Arch-Nemesis And How To Defeat It

Be it Forex trading or shares, traders everywhere have one big problem - overtrading. The simple, but extremely detrimental act of trading more than one can afford. Like all unhealthy addictions, it starts off with the thought "Just a bit more, what could possibly happen?" and before you realize, you're sinking in losses and owe thousands of leverage money to your broker. 

Many traders have faced the fury of the markets and lost thousands over one bad trade they could have avoided making. Foreign exchange is a very dangerous market for traders who lack self-control; one mental push can send you tumbling down the hill studded with sharp losses. 

Forex Brokers In South Africa

If you can relate to the feeling of wanting to trade more, you need to be wary! Losses come in Forex just like the profits - in massive amounts. And to keep away from them, you will have to keep from overtrading. Here's what you should do: 

1) Trade With Stop-Losses In Place:

An easy way to keep losses from finding their way in through the extra trades you place is to trade with a Forex Trading Strategies that prioritizes stops. These mighty useful elements are designed to withdraw your position once you have incurred a certain loss and thereby keep you from incurring any more!

2) Keep A Trade/Profit Threshold And Follow It: 

If you have placed a few ten trades in a week, let them be the limit. Overtrading happens mainly because traders don't know when to stop. Set a mental profit and trade limit, beyond which you won't participate in trades. This will help greatly while Forex trading, even in the long run.

3) Let Go Of Losing Trades And Past Losses: 

What's done is done, money lost is lost - there is no use lamenting over it. Instead, buckle up and look forward to bettering your approach for the future trades you will be making! 

4) Maintain A Trading Journal: 

With a little retrospection, a huge number of Forex trading losses can be avoided. Keep a trading journal and note down what happens in your trades, this will help you analyze the trades and make improvements as necessary - ultimately making you a smarter, more controlled trader.  

Get yourself a good Forex Broker In South Africa, one who is invested in your success as much as you are. Get WesternFX! With the stellar Forex trading strategies we provide, you will be able to climb to the top swiftly and stay there. Forex trading comes with an arsenal of difficulties - technical, physical and mental, and we will be by your side throughout. Call us now and to with our experts!